Trading Privileges

Seat
**Seat** is a figurative term that refers to an individual's or firm's membership on a securities or commodities exchange. A seat grants the holder the right to trade on the floor of the exchange and to access various trading privileges. Traditionally, seats are bought and sold at prices determined by supply and demand within the marketplace. The ownership of a seat is often considered prestigious and can be highly valuable due to the privileges and opportunities it confers upon the holder.

Accounting Terms Lexicon

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